Lending Institutions, Health Care, and Human Capital

Lending Institutions, Healthcare and Human Capital
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Are International Lending Institutions Hindering or Helping the Social, Political or Economic Development of Cuba?
Cuba is in a transition period as it awaits the stepping down of President Raul Castro in 2018. The nation had instituted monetary and fiscal reforms in 2008, but much more is needed to revitalize the stagnating economy (Vidal & Brown, 2015). The International Financial Institutions like the International Bank for Reconstruction and the Development (The World Bank) and the International Monetary Funds are key in assisting the Cuban Economy transition into a more robust economic model (Schmieg, 2017).
However, at the moment the Cuban State is still not admitted to the International Financial Institutions, and there are obstacles to gaining admission. United States’ Laws bar any form of multilateral funding to the state and their representatives in the International Financial Institutions are instructed to oppose any such moves (Vidal & Brown, 2015). Nonetheless, the readmission of the communist state back into the global economy, as evidenced by other former communist states, promises better things to come. For instance, Albania which joined the International Monetary Fund in 1991, and got its first stand-by loan arrangement in 1992, saw the improvement of the country’s overall standard of living (Vidal & Brown, 2015). Vietnam too is a good example that was given access to foreign aid from the International Financial Institutions and coupled with initial economic reforms saw the country gain in many areas including Gross Domestic Product and Life expectancy improvement (Vidal & Brown, 2015). These parallels provide universal gains that support the accession of Cuba back into the global financial system. But to achieve this, the government must promulgate certain reforms: The International Financial Institutions demand increased government transparency, the decentralization of state-owned corporations and the merging of the dual-currency system (Davis & Piccone, 2017).
Four Ways in Which a Healthy Population Strengthens the Economy of Cuba
Cuba’s national healthcare system has initiated strategies that have resulted in the consistent enhancement of the people’s health status, albeit its economic conditions. The health indicators for their population are at par with developed nations (Keck & Reed, 2012). There have one of the best primary care networks, a public health system unequal to any other, and education system that promotes medical skills, a well-equipped biomedical research facility, early warning signs for infectious diseases (Keck & Reed, 2012). All these offer employment opportunities for the citizens of the small island nation. Cuba’s health system has ensured that country does not deteriorate economically and has empowered its citizens to focus more on income-generating activities. It has solved the basic health problems that plague most developing countries like life expectancy, infant mortality and reduced discrimination based on gender and race in healthcare services (Linares, 2015). Economic performance and health performance are intertwined—a...